Calculate the value of a European put option on Apple stock. You are given the following parameter values: • The stock pays no dividends. • The exercise price is $115. • The interest rate is 4%. • The current stock price is $115. • The time to maturity of the option on Apple is 3 months. • The value of a European call option with the same maturity and strike is equal to $12.15.
Calculate the value of a European put option on Apple stock. You are given the following parameter values: • The stock pays no dividends. • The exercise price is $115. • The interest rate is 4%. • The current stock price is $115. • The time to maturity of the option on Apple is 3 months. • The value of a European call option with the same maturity and strike is equal to $12.15.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 1P
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Calculate the value of a European put option on Apple stock. You are given the following parameter values:
• The stock pays no dividends.
• The exercise price is $115.
• The interest rate is 4%.
• The current stock price is $115.
• The time to maturity of the option on Apple is 3 months.
• The value of a European call option with the same maturity and strike is equal to $12.15.
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